GlobeNewswire by notified

How much do investors in Russian airports stand to lose?

Share

Press Release - March 28, 2022

How much do investors in Russian airports stand to lose?

International sanctions have to date had little impact on the value of Russian airports, but their apparent resilience may not last. Large losses are to be expected if the crisis continues.

In a new research note, EDHECinfra shows that international sanctions have only destroyed a fraction of the value of Russia's airport sector so far. As of March 2022, revenues lost to foreign airspace closures and the higher risk premia of Russian assets have reduced the value of private investments in Russian airports by less than 5% on average. This relatively low figure is in part due to the fact that most of the air traffic that makes up Russian airport revenues is domestic.

However, the research also shows that these losses will quickly increase as internal traffic starts to decline in 2022, and until 2025, following the loss of access of Russian airlines to foreign parts and maintenance. EDHECinfra considers a 5-year crisis scenario during with Russian air traffic is reduced to a quarter of its current value in the next three years. In this scenario, the combined effect of lower revenues and the hike in risk premia and interest rates creates losses for investors of a quarter of the value of their holdings.

"Investors will lose at least 25%," says Frederic Blanc-Brude, one of the co-authors, highlighting that the scenario assumptions can be seen as conservative, since they exclude any long-term consequences beyond a period of five years. "Not all private assets would survive these conditions," he says, "but this is an average."

The research emphasises that sanctions that impact cash flows can only go so far when it comes to infrastructure. "With 30 to 50 years of future cash flows," says Tim Whittaker, another co-author, "even deep cash flow shocks do no reduce long-term value that much, as long as they are short-lived. We also saw this with Covid lockdowns." The real armour-piercing sanctions, the researchers say, are the ones that increase the cost of risk, that is, the fair value discount rate. "With 'risk-based' sanctions, like ones that apply to the Russian financial sector," says Blanc-Brude, "the impact on fair value is immediate, and exponential."

The Russian state may not worry about market fair value, but international investors do, whether they are oligarchs or pension and sovereign wealth funds.

The most important airports in Russia are currently owned by oligarchs, but international investors in infrastructure are also exposed to Russian airports and have invested at least USD10bn over the past decade. They include Japanese, European, Middle Eastern and Singaporean investors. The resilience of their investments will be greatly tested by the current crisis and if sanctions were to stay in place longer, the relative absence of Russian technological sovereignty would create even larger losses.


About EDHEC Infrastructure Institute:
EDHECinfra® is a venture of EDHEC Business School and a provider of indices and analytics for the infrastructure investment universe. Because the majority of infrastructure assets are not publicly traded, there has traditionally been a vast knowledge gap when it comes to gauging the prices of these assets and their evolution. We are closing that gap with analytics and calculated indexes that already cover 25 countries representing an investable universe of 7,000 companies. We are based in Singapore and London. Visit edhec.infrastructure.institute.

EDHECinfra maintains the infraMetrics® platform: an online information system that gives access to key market indices including the infra300® and infra100® series. InfraMetrics also includes a wealth of valuation data and analytics, risk metrics, a fund strategy analysis tool providing robust performance quartiles for any segment, strategy or vintage, and peer group analyses allowing investors to compare themselves against comparable segments of the market.

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://notified.com

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

PRESS RELEASE: NACON: WRC GENERATIONS: THE MOST COMPLETE RALLY GAME IS COMING IN OCTOBER!18.5.2022 17:46:00 CEST | Press release

WRC GENERATIONS: THE MOST COMPLETE RALLY GAME IS COMING IN OCTOBER! Lesquin, 18th May 2022 - NACON and the studio KT Racing are pleased to announce their new rally game, WRC Generations, the official video game of the FIA World Rally Championship, scheduled for release in Autumn 2022 on PlayStation®4, PlayStation®5, Xbox One, Xbox Series X|S, Nintendo Switch and Steam for PC. The result of 7 years of collaboration with legendary drivers, who have already made WRC 10 and WRC 9 the references of the genre, the latest entry in the series is an authentic and comprehensive rally racing simulation, giving players the chance to drive powerful cars in the most famous rallies of all time! Check out the announcement trailer for WRC Generations: [link] An unrivalled level of realism Never before have games come this close to the real-life World Rally Championship! Hailed by both critics and professionals, this year's WRC simulation has been reinforced with numerous improvements and optimisations

PRESS RELEASE: NACON PRESENTS AN AMBITIOUS LINEUP AND ANNOUNCES TWO NEW GAMES18.5.2022 17:45:00 CEST | Press release

NACON PRESENTS AN AMBITIOUS LINEUP AND ANNOUNCES TWO NEW GAMES NACON has confirmed its status as a major mid-publisher and creator of standard-setting accessories Paris (France), 18 May 2022 – The latest edition of Bigben Week opened its doors on Monday. This major event for the group is the perfect occasion to present its products and objectives to the media and international partners. NACON, the group's gaming brand, held a press conference to announce all of its news and to explain how it is changing. The last time the event was held – in 2019, due to the health crisis – BIGBEN presented its soaring ambitions for the years to come. Bigben Week is an opportunity to highlight the company's strong growth over the last three years along with the major changes it has undergone. AN EFFECTIVE STRATEGY NACON’s March 2020 listing on the stock market raised more than €100 million, reinforcing the company's ambitions and resources. Over the course of three years, NACON acquired no fewer than 9

FDA beviljar särläkemedelsstatus för tasquinimod vid behandling av myelofibros18.5.2022 15:00:00 CEST | Pressemelding

Lund 18 maj 2022 - Active Biotech AB (Nasdaq Stockholm: ACTI) meddelade idag att amerikanska Food and Drug Administration (FDA) har beviljat särläkemedelsstatus för tasquinimod vid behandling av myelofibros. "Särläkemedelsstatus som FDA tilldelat för tasquinimod i myelofibros utgör ett viktigt steg framåt för Active Biotech", säger Helén Tuvesson, VD Active Biotech. "Det öppnar en viktig regulatorisk väg och ger oss potential att snabbt avancera utvecklingen av tasquinimod i denna patientpopulation.” FDAs Orphan Drug Designation program ger särläkemedelsstatus för läkemedelskandidater avsedda för säker och effektiv behandling, diagnos eller förebyggande av ovanliga sjukdomar som drabbar färre än 200.000 människor i USA. Denna särläkemedelsstatus ger 7 års marknadsexklusivitet vid marknadsgodkännande samt vissa andra fördelar. I februari 2022 ingick Active Biotech ett exklusivt licensavtal med Oncode Institute i Nederländerna, som verkar på uppdrag av Erasmus University Medical Center (

FDA grants Orphan Drug Designation for tasquinimod in myelofibrosis18.5.2022 15:00:00 CEST | Press release

Lund May 18, 2022 - Active Biotech AB (Nasdaq Stockholm: ACTI) today announced that the U.S. Food and Drug Administration (FDA) has granted tasquinimod Orphan Drug Designation for the treatment of myelofibrosis. “The Orphan Drug Designation awarded by the FDA for tasquinimod in myelofibrosis represents an important step forward for Active Biotech”, said Helén Tuvesson, CEO Active Biotech. “It opens an important regulatory pathway and provides us with the potential to rapidly advance the development of tasquinimod in this patient population.” The FDA Orphan Drug Designation program provides orphan status to drugs and biologics which are defined as those intended for the safe and effective treatment, diagnoses or prevention of rare diseases or disorders that affects fewer than 200,000 people in the U.S. This designation provides for a seven-year marketing exclusivity period against competition, as well as certain incentives. In February 2022, Active Biotech entered into an exclusive lice

Kommuniké från årsstämma i Arcoma Aktiebolag den 18 maj 202218.5.2022 14:00:00 CEST | Pressemelding

2022-05-18 PRESSRELEASE Kommuniké från årsstämma i Arcoma Aktiebolag den 18 maj 2022 Idag, den 18 maj 2022, hölls årsstämma i Arcoma Aktiebolag. Årsstämman genomfördes enbart genom förhandsröstning (poströstning) med stöd av tillfälliga lagregler. Nedan följer en sammanfattning av de beslut som fattades. Samtliga beslut fattades med erforderlig majoritet. Beslut om fastställande av räkenskaper samt resultatdisposition Årsstämman beslutade att fastställa resultat- och balansräkning samt koncernresultat- och koncernbalansräkning. Årsstämman beslutade även att disponera över bolagets resultat i enlighet med styrelsens förslag i årsredovisningens förvaltningsberättelse, innebärande att ingen vinstutdelning lämnas för 2021 samt att disponibla medel balanseras i ny räkning. Ansvarsfrihet åt styrelseledamöterna och verkställande direktören Årsstämman beslutade att bevilja styrelseledamöterna och verkställande direktören ansvarsfrihet för räkenskapsåret 2021. Val och arvodering av styrelse och